TX HD 78: Dee Margo Flip-Flops On Small Business Taxes

By Vince Leibowitz on Aug 21, 2008 in 2008 Texas Elections

Dee Margo has pulled a complete flip-flop on taxes for small businesses in the race for HD 78 in El Paso. Margo is the right-wing GOP nominee who unseated moderate Pat Haggerty (R-El Paso) in the March Primaries.

Margo, who faces Joe Moody (D-El Paso), said last week that the state ought to return to the franchise tax. However, when he ran against Sen. Eliot Shapleigh in 2006 before carpetbagging in to HD 78 (claiming, no less, that he needed a one story house to accomodate his maid’s ailing health), he said he wanted to completely eliminate the franchise tax, which was replaced by the margins tax.

“When Dee Margo ran against Eliot Shapleigh, he said he wanted to completely eliminate the franchise tax, but now he has flip-flopped and says he supports it,” Moody said. “If Olympic judges had been there to rate his flip flop, all of them would have given Margo a 10.”

More from Team Moody:

Moody said today that neither tax is fair. “The franchise tax let too many large businesses – including many oil company partnerships – escape without paying any taxes at all,” Moody said. “Now, the margins tax is hitting low-profit small businesses and driving them into the red.”

Moody said he wants to revamp the margins tax by raising the revenue exemption to $1 million and by eliminating taxes on low-profit businesses. “A tax isn’t fair if it drives mom and pop businesses into the red and maybe out of business,” Moody said. “That’s just wrong.”

Moody said he’s the candidate small business owners can rely on. “Who knows, Mr. Margo may change his mind again, especially since he is so close to Rick Perry, the margins tax’s chief proponent,” Moody said. “Or, Margo could again decide he wants to expand the sales tax, which would mean Texas would have the highest sales tax rate in the country.”

Technorati Tags Dee Margo, Democratic Party, El Paso, Eliot Shapleigh, Joe Moody, margins tax, Pat Haggerty, Republican Party, Rick Perry, Texas, Texas House District 78